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Big Dave’s Cheesesteaks CEO grew up in ‘survival mode’ selling newspapers and bean pies—now his chain sells a $12 cheesesteak every 58 seconds

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Today, Big Dave’s Cheesesteaks is serving up the Philly classic to millions of hungry customers all across Georgia, North Carolina, South Carolina, and Georgia. But the multimillion-dollar operation is far from being the first hustle of its founder and CEO, Derrick Hayes. Growing up in Philadelphia, the entrepreneur made ends meet by selling bean pies and newspapers as a kid. 

“I was in survival mode my whole life, from being a kid to high school,” Hayes tells Fortune. “I was always a hustler. I was a serial entrepreneur even when I was younger.”

“When [I was] 12 years old, I was selling Philadelphia newspapers and bean pies…I would go to the suburban neighborhoods and shovel snow when there was no snow on the ground in Philly. I never liked to ask my parents for money. I always wanted to have my own, and [it] made me feel good about myself.”

Hayes is now a long ways away from his teenage years shoveling driveways, and his early career as a postal-service worker. In 2014, the Philly native finally pursued his passion after his ailing father wished for him to start his own business—so he opened Big Dave’s Cheesesteaks, named after his late father, in a Shell gas station in Dunwoody, Georgia. Ten years later, the chain has exploded across the U.S. with 12 locations, and four new restaurant openings completed in just four months of this year. Two of Big Dave’s hotspot locations in Atlanta brought in around $1.1 million to 1.8 million in net sales last year; and the chain sells a cheesesteak, ranging from the basic $11.99 sandwich to $46.99 specialty choices, every 58 seconds, with more than 1,500 of the iconic sandwiches sold every day. 

With 100% of Big Dave’s franchise owners identifying as Black or BIPOC, Hayes is pouring money back into underserved communities, spreading his entrepreneurial spirit beyond the suburban sidewalks where he once sold bean pies. 

“As I’ve been able to be an entrepreneur and [in] growing this business, I learned that my gift is not even making the money. My gift is actually giving people opportunity,” Hayes says. “I’m able to lift people through my dream. I’ve got 400 employees right now, and everybody has an opportunity to be able to spread their wings inside of Big Dave’s Cheesesteaks.” 

Leaving the U.S. postal service to pursue his dad’s wish

Even though Hayes embodied an entrepreneurial spirit from a young age, his first job after high school in Philadelphia was a classic nine-to-five. During his early 20’s, the CEO was working for the postal service, making good money with health benefits. But everything changed when his father fell ill—he was battling lung cancer, and needed support during his final years. Hayes’ employer wouldn’t let him take time off to be at his side, so Hayes was forced to walk away from his stable career. 

“When I got in the postal service, I thought that that would be the career job that I would probably retire off of,” Hayes says. 

“I went to my boss and I said, ‘Hey, I’ve been working here for almost four years, never taking a day off. I need time off for my father so I can be there with him.’…And my boss told me, ‘I’m sorry, it’s the holidays, I can’t give you off.’ I said, ‘Listen, I’m gonna get another job, I’m not gonna get another father.”

Spending those final moments with father would reshape both his personal life and professional life forever. Not only was it life-altering to see his father and best friend pass away from the harrowing illness, but his dad’s final wish also changed the trajectory of his entire career. Hayes said he promised his father he would have something to show for his hard work. Five years later, Big Dave’s Cheesesteaks—named in memory of his father—would be born in an old Shell gas station. 

“My dad gave me principles and morals that’s instilled in me today…When it comes to Big Dave cheesesteaks, I always think about how my father would do it. Because watching your dad die in front of your face is something that you’ll never forget,” Hayes says. “I wouldn’t say I was forced into this career, but it was something that I felt like was needed, and it was something that I felt like I wanted to honor my father.”

From buying an abandoned Shell gas station to opening 12 locations across the U.S. 

In 2014, Hayes finally decided to fulfill his father’s wish and put his business plan into action by opening up his own joint. And he found the perfect place to do it: at a 700-square-foot Shell gas station in Atlanta, Georgia, near where some of his family members lived. Although the serial entrepreneur is now known for his cheesesteaks, he actually started out slinging Italian ices. 

“It was called Dave’s Philly Water Ice. Nobody was supporting me—I thought when I opened this business up, I’d have lines down the block. And people used to be like, ‘Are you selling cups of water?’” Hayes reminisces. “I’m telling my mom, ‘This is not gonna work. It worked in Philly, but they are just not adapting to us.’ My mom was like, ‘Listen, do the thing that you really wanted to do, put the cheesesteaks in there.’”

Hayes quickly pivoted the restaurant to serve up the iconic Philly sandwich: a bread roll stuffed with seasoned halal beef, onions, mushrooms, peppers, and cheese. Despite the menu revamp, hungry customers still weren’t flooding into his restaurant until a couple years later when rapper, actress, and TV host Eve popped into the store. The Philly-native was in town shooting comedy-drama film Barbershop: The Next Cut, hankering an authentic cheesesteak. Her support came in the nick of time.

“My ego, my pockets, my business, everything is falling apart because I’m not making money. I don’t have people supporting the brand. And then life taught me, ‘If you keep chasing, something will happen,’” Hayes says. “Later on that week, she popped up…She just posted [on social media], and it went viral. Next thing you know, I got lines out the gas station—it was more traffic than I could handle.”

The success didn’t stop there. In 2018, Hayes was invited to represent Georgia at a sandwich competition in Alabama. With no prior experience working in professional kitchens as a chef—he learned how to make good food with his grandfather, cooking up meals on Sundays—Hayes took seventh place and beat out 1,500 trained professionals. At this point, Hayes and his restaurant chain were getting more and more attention; the brand opened two locations in Georgia in 2020, and three inside the Mercedes Benz Stadium. In 2022, Big Dave’s flagship location in downtown Atlanta generated over $2.3 million in revenue alone. 

Even though thousands of cheesesteaks are now flying off grills and into customers’ hands daily, Big Dave’s multimillion-dollar success was anything but meteoric. It took years of steady hard work and incremental wins for the business to stand where it is today—and Hayes wouldn’t have it any other way.

“Everything in my career has stages, where I’m blessed to say that I didn’t move too fast and move too slow,” Hayes says. “I moved at a good pace.”



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SpaceX to offer insider shares at record-setting valuation

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SpaceX is preparing to sell insider shares in a transaction that would value Elon Musk’s rocket and satellite maker at a valuation higher than OpenAI’s record-setting $500 billion, people familiar with the matter said.

One of the people briefed on the deal said that the share price under discussion is higher than $400 apiece, which would value SpaceX at between $750 billion and $800 billion, though the details could change. 

The company’s latest tender offer was discussed by its board of directors on Thursday at SpaceX’s Starbase hub in Texas. If confirmed, it would make SpaceX once again the world’s most valuable closely held company, vaulting past the previous record of $500 billion that ChatGPT owner OpenAI set in October. Play Video

Preliminary scenarios included per-share prices that would have pushed SpaceX’s value at roughly $560 billion or higher, the people said. The details of the deal could change before it closes, a third person said. 

A representative for SpaceX didn’t immediately respond to a request for comment. 

The latest figure would be a substantial increase from the $212 a share set in July, when the company raised money and sold shares at a valuation of $400 billion.

The Wall Street Journal and Financial Times, citing unnamed people familiar with the matter, earlier reported that a deal would value SpaceX at $800 billion.

News of SpaceX’s valuation sent shares of EchoStar Corp., a satellite TV and wireless company, up as much as 18%. Last month, Echostar had agreed to sell spectrum licenses to SpaceX for $2.6 billion, adding to an earlier agreement to sell about $17 billion in wireless spectrum to Musk’s company.

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The world’s most prolific rocket launcher, SpaceX dominates the space industry with its Falcon 9 rocket that launches satellites and people to orbit.

SpaceX is also the industry leader in providing internet services from low-Earth orbit through Starlink, a system of more than 9,000 satellites that is far ahead of competitors including Amazon.com Inc.’s Amazon Leo.

SpaceX executives have repeatedly floated the idea of spinning off SpaceX’s Starlink business into a separate, publicly traded company — a concept President Gwynne Shotwell first suggested in 2020. 

However, Musk cast doubt on the prospect publicly over the years and Chief Financial Officer Bret Johnsen said in 2024 that a Starlink IPO would be something that would take place more likely “in the years to come.”

The Information, citing people familiar with the discussions, separately reported on Friday that SpaceX has told investors and financial institution representatives that it is aiming for an initial public offering for the entire company in the second half of next year.

A so-called tender or secondary offering, through which employees and some early shareholders can sell shares, provides investors in closely held companies such as SpaceX a way to generate liquidity.

SpaceX is working to develop its new Starship vehicle, advertised as the most powerful rocket ever developed to loft huge numbers of Starlink satellites as well as carry cargo and people to moon and, eventually, Mars.



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U.S. consumers are so strained they put more than $1B on BNPL during Black Friday and Cyber Monday

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Financially strained and cautious customers leaned heavily on buy now, pay later (BNPL) services over the holiday weekend.

Cyber Monday alone generated $1.03 billion (a 4.2% increase YoY) in online BNPL sales with most transactions happening on mobile devices, per Adobe Analytics. Overall, consumers spent $14.25 billion online on Cyber Monday. To put that into perspective, BNPL made up for more than 7.2% of total online sales on that day.

As for Black Friday, eMarketer reported $747.5 million in online sales using BNPL services with platforms like PayPal finding a 23% uptick in BNPL transactions.

Likewise, digital financial services company Zip reported 1.6 million transactions throughout 280,000 of its locations over the Black Friday and Cyber Monday weekend. Millennials (51%) accounted for a chunk of the sizable BNPL purchases, followed by Gen Z, Gen X, and baby boomers, per Zip.

The Adobe data showed that people using BNPL were most likely to spend on categories such as electronics, apparel, toys, and furniture, which is consistent with previous years. This trend also tracks with Zip’s findings that shoppers were primarily investing in tech, electronics, and fashion when using its services.

And while some may be surprised that shoppers are taking on more debt via BNPL (in this economy?!), analysts had already projected a strong shopping weekend. A Deloitte survey forecast that consumers would spend about $650 million over the Black Friday–Cyber Monday stretch—a 15% jump from 2023.

“US retailers leaned heavily on discounts this holiday season to drive online demand,” Vivek Pandya, lead analyst at Adobe Digital Insights, said in a statement. “Competitive and persistent deals throughout Cyber Week pushed consumers to shop earlier, creating an environment where Black Friday now challenges the dominance of Cyber Monday.”

This report was originally published by Retail Brew.



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AI labs like Meta, Deepseek, and Xai earned worst grades possible on an existential safety index

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A recent report card from an AI safety watchdog isn’t one that tech companies will want to stick on the fridge.

The Future of Life Institute’s latest AI safety index found that major AI labs fell short on most measures of AI responsibility, with few letter grades rising above a C. The org graded eight companies across categories like safety frameworks, risk assessment, and current harms.

Perhaps most glaring was the “existential safety” line, where companies scored Ds and Fs across the board. While many of these companies are explicitly chasing superintelligence, they lack a plan for safely managing it, according to Max Tegmark, MIT professor and president of the Future of Life Institute.

“Reviewers found this kind of jarring,” Tegmark told us.

The reviewers in question were a panel of AI academics and governance experts who examined publicly available material as well as survey responses submitted by five of the eight companies.

Anthropic, OpenAI, and GoogleDeepMind took the top three spots with an overall grade of C+ or C. Then came, in order, Elon Musk’s Xai, Z.ai, Meta, DeepSeek, and Alibaba, all of which got Ds or a D-.

Tegmark blames a lack of regulation that has meant the cutthroat competition of the AI race trumps safety precautions. California recently passed the first law that requires frontier AI companies to disclose safety information around catastrophic risks, and New York is currently within spitting distance as well. Hopes for federal legislation are dim, however.

“Companies have an incentive, even if they have the best intentions, to always rush out new products before the competitor does, as opposed to necessarily putting in a lot of time to make it safe,” Tegmark said.

In lieu of government-mandated standards, Tegmark said the industry has begun to take the group’s regularly released safety indexes more seriously; four of the five American companies now respond to its survey (Meta is the only holdout.) And companies have made some improvements over time, Tegmark said, mentioning Google’s transparency around its whistleblower policy as an example.

But real-life harms reported around issues like teen suicides that chatbots allegedly encouraged, inappropriate interactions with minors, and major cyberattacks have also raised the stakes of the discussion, he said.

“[They] have really made a lot of people realize that this isn’t the future we’re talking about—it’s now,” Tegmark said.

The Future of Life Institute recently enlisted public figures as diverse as Prince Harry and Meghan Markle, former Trump aide Steve Bannon, Apple co-founder Steve Wozniak, and rapper Will.i.am to sign a statement opposing work that could lead to superintelligence.

Tegmark said he would like to see something like “an FDA for AI where companies first have to convince experts that their models are safe before they can sell them.

“The AI industry is quite unique in that it’s the only industry in the US making powerful technology that’s less regulated than sandwiches—basically not regulated at all,” Tegmark said. “If someone says, ‘I want to open a new sandwich shop near Times Square,’ before you can sell the first sandwich, you need a health inspector to check your kitchen and make sure it’s not full of rats…If you instead say, ‘Oh no, I’m not going to sell any sandwiches. I’m just going to release superintelligence.’ OK! No need for any inspectors, no need to get any approvals for anything.”

“So the solution to this is very obvious,” Tegmark added. “You just stop this corporate welfare of giving AI companies exemptions that no other companies get.”

This report was originally published by Tech Brew.



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